Portfolio Decarbonization Coalition, SWF RI and Trucost announce research prize winner

Stanford and Yonsei Universities to receive €12,500 grant and free access to Trucost data

New research into the benefits of low-carbon investing is being supported by the Portfolio Decarbonization Coalition, the Sovereign Wealth Fund Research Initiative and Trucost through a prize awarded at the UN Environment Programme Finance Initiative’s Global Roundtable in Dubai today.

The winner of the research prize is a team from Stanford and Yonsei Universities with their proposal “Is ‘Being Green’ Rewarded in the Market? An Empirical Investigation of Decarbonization Risk and Stock Returns.”

Investors and financial regulators are increasingly concerned about the risks of climate change such as damage to infrastructure assets from extreme weather, loss of value in equity held in carbon intensive businesses, and financing of fossil fuel projects creating stranded assets. However, there are also many investment opportunities in renewable energy, green buildings, the smart grid and other sustainable technologies.

The Portfolio Decarbonization Coalition aims to reduce greenhouse gas emissions by mobilizing a critical mass of institutional investors to decarbonize their portfolios. To date, 27 investors have joined the initiative overseeing the decarbonization of $600 billion out of $3.2 trillion in assets under management.

To support research into aligning investment portfolios with a low-carbon economy, the Portfolio Decarbonization Coalition invited applications for a grant of €12,500, while Trucost offered free access to its academic database platform.

More than 20 applications were received and the winner was selected from a shortlist of six proposals by a committee of financial experts from financial institutions, government and academia. These included:
Richard Mattison, CEO Trucost
Patrick Bolton, Professor of Business and Economics, Columbia University
Sebastien Pouget, Professor of Finance, University of Toulouse
Adam Strudwick, Senior Portfolio Manager, APG Asset Management
Karsten Loeffler, Managing Director, Allianz Climate Solutions
Jean Boissinot, Direction Generale du Tresor, French Treasury

The winning team comprises the Executive Director of the Global Project Centre at Stanford, Ashby H.B. Monk, Associate Professor of Economics, Yonsei University, Ki Young Park, and Soh Young In, a PhD student in Civil and Environmental Engineering, Stanford University.